The Lame Duck Restaurant owned by Johnny appoints a sales and marketing representative (Summer) to design and launch new website. Summer is very bright and her design looks amazing. As the website is exceptional, Johnny decides to revamp the pricing system and put 15% mark-up on all food. Summer develops beautiful design of the new pricing system and posts it online.

Two weeks later after the prices are changed, Li books the wedding using the menu he found on one of the tables. Summer mistakenly accepts the booking, asking Abu from accounts to accept the deposit and finalise the invoice. Li calls, accepts the quoted price, pays the deposit and books the date for the wedding. The same day, Li sends out invitations to all her friends studying at CDU. The day before the banquet, the error in the quotation is discovered. Johnny gets involved, calls the customer and says that the Lame Duck Restaurant cannot host the wedding (because the quotation was made in error). However, Li insists that we have a contract and says that under the law the Lame Duck Restaurant must deliver.

1. Advise Johnny, whether the contract exists.

(5 marks)

2. Was there a mistake? If yes, what kind of mistake?

(5 marks)

3. Explain what will happen if the Lame Duck Restaurant is obliged to provide the premises for the wedding, but refuses to do so.